Because different value chain actors define quality differently, the study systematically analyzes quality using two categories of quality attributes (of ware potatoes): production-related and market-production-related. Attributes like yield, disease tolerance, maturity period, drought resistance, and crop management intensity are production-related because they determine production practices. Tuber size, stew quality, cooking quality, color, shape, and shelf life are market-related attributes because they determine sales options. For potatoes, variety type largely determines intrinsic quality attributes (Howard, 1974; Jemison et al., 2008; Long et al., 2004). However, objective information on the quality attributes of local varieties is lacking. In situations where no objective quality information is available, farmer knowledge can be used to describe the quality of different varieties (Cavatassi et al., 2011). Thus, the study first addresses the question ‘How do ware potato farmers characterize currently used potato varieties (both LVs and IVs) in terms of production- and market-related quality attributes?’
The extent of quality alignment in the potato value chain is measured by the extent to which IVs released by research institutes are being adopted by ware potato farmers, and the extent 36
to which these varieties are liked by buyers at the different stages of the chain. To do so, the preferences of research institutes are measured by their research priorities; the preferences of farmers are measured by their production decisions; and the preferences of traders are measured by their preferences for specific quality attributes.
2.3.1 Survey
Farmers’ survey
The study was carried out in the spring of 2011 among 350 ware potato farmers in the Rift valley region of Ethiopia. Although potatoes can be produced in different parts of the country, this study focuses on the Rift Valley region for two main reasons. Firstly, ware potato farmers in the Rift Valley region are the main suppliers of ware potatoes to the major cities of Ethiopia. For instance, the Shashemene spot market, in the center of the study region, is the main trade hub of ware potatoes in Ethiopia (Emana and Nigussie, 2011; Tefera et al., 2011). Secondly, to characterize the different potato varieties, it is necessary that the farmers in the survey have the same understanding of the existing varieties. In Ethiopia, variety names lack standardization and are often attached to local languages (Cavatassi et al., 2011). Thus, focusing on one region avoids problems arising from confusion of variety names.
The ware potato farmers were randomly selected from the land ownership register obtained from the Office of Agriculture and Rural Development from Shashemene, Shala, and Shiraro districts. This study used the data of 346 farmers in the analysis as data from four respondents were dropped later in the analysis. The main objective of this part of the study was to characterize the different potato varieties, both the IVs and the LVs. Characterization of the different potato varieties was carried out as follows.
Firstly, the study identified seven potato varieties, LVs and IVs, and the classification was done by farmers, triangulated with information from agricultural agents. The varieties were:
Agazer (AZ), Nech Abeba (NA), Key Dinch (KD), Key Abeba (KA), Gudane (GD), Jalene (JL), and Bule (BL). GD, JL, and BL are IVs that were released by the Ethiopian Institute of Agricultural Research (EIAR) while the others are LVs in which no documentation was
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found on how and when these varieties were first introduced in the region. Secondly, to understand important characteristics of the varieties, quality attributes were classified into two dimensions: production- and market-related.
To understand the factors influencing ware potato farmers’ decision to grow a particular variety, they were asked the following question (for each of the varieties): ‘What was the main reason that led you to grow this variety in the previous season?’
Downstream actors’ survey
The main objective of this part of the survey was to understand the quality preferences of buyers in the potato value chain. We carried out this survey in the summer of 2011 among 10 stationed wholesalers, 13 retailers, and 11 big hotels located in Addis Ababa. Because collecting wholesalers largely supply potatoes to the central market, Addis Ababa, we purposely selected the buyers at the central market. The question for buyers was stated as follows: “Please distribute 100 points over the different quality attributes that you may take into account when you are buying ware (consumption) potatoes. Give the highest value to the most important quality attribute, the second highest value to the second most important quality attribute, etc.”
2.3.2 Secondary data
The objective of using this data was to understand the extent of quality uncertainty a potato farmer could face when selling potato in the spot market. As a potato trader has to negotiate with a number of sellers in each market day and judge quality on the spot, the likelihood of incorrectly measuring quality might be high; this can have an effect on smallholders’
incentive to improve quality.
Thus, to understand the extent of this problem, the study used a database of two years weekly ware potato prices collected between 16 June 2009 and 21 June 2011 from Shashemene local market. Shashemene spot market is the main trade hub of ware potato in Ethiopia (Tesfaye et al., 2008). The data contained information about the price received by farmers and buyers for both a ‘high’ and ‘low’ quality delivery. The price data were based on the common commercial (local) variety, NA. Thus, any difference in quality was attributed to tuber size, 38
physical damages, and other quality criteria in which a specific buyer considers important on the spot. The data were collected on 108 market days by the Office of Shashemene District Agriculture and Rural Development.